Euro bursts to fresh dollar high

The US dollar was dragged down further against the euro in Asian trade as dealers bet that further poor US economic data could lead to a rate cut.In early Tokyo trade, the euro climbed to $1.4283 after breaching the $1.42 level for the first time last week.Traders are now looking ahead to US jobless data out on Friday for a better idea of how the housing slump and credit woes are hurting the economy.Depressed numbers could strengthen the Fed's hand in cutting rates further.The dollar has been sliding since the Federal Reserve cut rates from 5.25% to 4.75% in September to help rejuvenate confidence in the world's largest economy.This followed a summer of turmoil in the world's credit markets, sparked by record loan defaults in the US sub-prime mortgage sector.Since then, a raft of mostly disappointing economic news and soft inflation figures has prompted anticipation of further rate cuts. Eurozone ratesMeanwhile, the European Central Bank's rate-setting committee is due to meet this week.No change is expected in the 13-member eurozone's key interest rate, which is currently 4%.Analysts say the ECB will want to exercise caution in the face of fragile stock markets, although Mr Trichet has maintained recently that Europe's economy remains strong.Investors will listen carefully to the words used by ECB President Jean-Claude Trichet in the news conference after the meeting for any indication of where eurozone rates will be headed next.